Takeovers Panel clears Toll's bid

The Takeovers Panel last night ruled that Toll Holdings' 95c a share bid for Tranz Rail does not breach the Takeovers Code.

Tranz Rail shareholder Infratil had complained that Toll had acted as a director of Tranz Rail in striking an exclusive track buyback deal with the Crown that was frustrating other potential offers.

The panel decided that Toll had not acted as a director of Tranz Rail and that because the Toll/Crown deal did not involve Tranz Rail directors it could not be considered under Rule 38 of the code, which deals with defensive tactics that may be used by targets of takeovers.